IDAPA 35.01.03.627 — PROPERTY EXEMPT FROM TAXATION -- CERTAIN PERSONAL PROPERTY - OWNERSHIP

CLARIFICATION.
Section 63-602KK(2), Idaho Code
01.
Idaho Code Section 63-602KK(2) Provides Persons With One Exemption in Each Idaho
County in Which They Meet the Ownership Rules.
(7-1-24)
a.
Person means a trust or estate, a partnership, an association, a limited liability company or a
corporation as described in Section 63-3005, Idaho Code.
(7-1-24)
b.
Although persons are limited to receiving one (1) exemption per county, a person owning more
than one (1) business within one (1) county may be entitled to more than one (1) exemption within the county.
(7-1-24)
02.
Common Enterprise and IRC Section 267 Restriction. For purposes of the Idaho Code Section
63-602KK(2) exemption, a person includes two (2) or more individuals or organizations using the property in a
common enterprise, and the individuals or organizations are within a relationship described in Section 267 of the
Internal Revenue Code. When related parties have separate property in the same county, the exemption can only be
claimed by one (1) person when both 627.02.a. and b. are met.
(7-1-24)
a.
Entities or individuals organized to manage a common scheme of business, are considered to be in
a common enterprise.
(7-1-24)
b.
A common enterprise having a relationship as defined by IRC Section 267 would be considered
one (1) person for purposes of this exemption.
(7-1-24)
c.
Ownership alone does not determine whether entities are one (1) person for purposes of this
exemption. Two (2) businesses can have identical ownership, and each receive the exemption, if they do not operate
as a common enterprise. In addition, entities in a common enterprise can receive separate exemptions, if their
ownership relationship is not identified in Section 267 of the Internal Revenue Code.
(7-1-24)
d.
For examples and illustrations see https://tax.idaho.gov.
(7-1-24)